The dollar rose against the safe-haven yen and Swiss franc on Monday, regaining some poise as European and Japanese stock markets started the week with gains, helping bolster risk sentiment.
Volumes waned in the European session with the United States closed for a national holiday.
And with Chinese stocks ending in the red after a four-day holiday, most investors were cautious before the monthly update on China’s economic health in the coming week, with August global trade data out on Tuesday unlikely to offer much solace.
At the G20 meeting at the weekend, policymakers agreed to oppose competitive devaluations and communicate policy shifts in a more transparent way, but they gave investors little insight into future macro trends.
On Friday, a mixed U.S. jobs report gave few clues to investors trying to determine when the Federal Reserve will finally hike interest rates.
The dollar was up 0.3 percent against the yen at 119.35, moving away from the day’s low of 118.66 and taking back some of Friday’s 1 percent tumble. It was up 0.4 percent against the Swiss franc at 0.9750.
The euro was slightly firmer at $1.1155, having gained in recent weeks as investors unwound euro-funded carry trades in which they borrowed euros to invest in high-yielding currencies.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.